When one user is viewed as being more responsible for common costs than other users, managers can allocate support department costs more fairly with the:
A) Stand-alone method
B) Reciprocal method
C) Step-down method
D) Incremental cost allocation method

Question

Quizplus · Accepted Answer

The Incremental Cost Allocation Method is used when one user is viewed as being more responsible for common costs than other users. This method allocates costs to the primary user first, and then allocates any remaining costs among other users incrementally, based on their respective levels of responsibility or usage. This approach allows for a more equitable distribution of costs when there's a clear primary user.

When One User Is Viewed as Being More Responsible for Common